Ethereum has paved the way for the creation of numerous applications. From decentralised finance to games, the blockchain can support building applications of various kinds. One such unique application of the Ethereum blockchain is the 0x platform which is powered by its token ZRX. 0x is an open-source platform that enables users to create crypto assets that represent physical assets, securities or any other crypto assets. The 0x platform uses the Ethereum blockchain for its management and token distribution.
History of 0x
The 0x protocol and the ZRX coin were founded by Will Warren and Amir Bandeali in 2016.
Will Warren is a computer scientist with a PhD in mechanical engineering from the University of California, San Diego.
Amir Bandeali worked as a trader at DRW Trading and a company called Chopper Trading before founding 0x.
Initial Coin Offering of ZRX coin
ZRX coins are the governance and incentive tokens for the users who maintain the order books on the 0x platform. The total supply of ZRX coins is 1 billion with close to 85% of the tokens currently in circulation.
The initial coin offering of the ZRX token happened in the year 2017. The ICO raised close to $27 million with close to 50% of the supply being sold to the public. The ICO was done on the Ethereum blockchain where users had to use Ethereum to purchase the ZRX token. The price of the coin was set at 1 ETH=2800 ZRX tokens with a minimum contribution of 0.1 ETH to participate.
How Does 0x Work?
As mentioned above, 0x software allows users to create custom crypto assets. Using 0x users can trade tokens which are hosted on the Ethereum blockchain. This enables peer-to-peer exchange without the need for an intermediary.
There are four key aspects to understanding how 0x works.
Relayers: Relayers are decentralised marketplaces that connect buyers and sellers on the 0x platform. They host order books and broadcast them to the network. Anyone can run a relayer and there are several options available with various features.
Orders: Orders are made by the market makers who provide liquidity. Market makers set the terms of the trade by mentioning the price, expiration date, and amount.
Smart Contracts: 0x uses smart contracts to enable settlements between buyers and sellers on the 0x platform. These smart contracts hold the tokens till the trade is complete and ensure that the transfer of tokens happens securely between parties.
ZRX tokens: ZRX is used for incentivising the market makers to provide liquidity. It is also used as a governance token in the 0x platform.
ZRX Year to Date Performance
Since Jan 1st 2023, the ZRX coin has given close to a 122% gain. It is currently trading at $0.33 at the time of writing. ZRX currently has a market capitalization of $280 million.
Factors Influencing ZRX coin price
The price of the ZRX coin is influenced by a few factors. Some are specific to the 0x protocol and some which apply to all crypto tokens. The factors specific to the 0x platform include the adoption of the 0x protocol and liquidity on the network. The general factors which influence its price include Market sentiment, regulatory developments, and competition from decentralised exchanges.
How to Buy ZRX on ZebPay?
If you are ready to trade using ZebPay, here is what you need to do.
Step 1: Deposit Fiat currency into your ZebPay wallet
Step 2: Open the Quick Trade panel and search for the token you wish to trade
Step 3: Enter the amount of Fiat you would like to invest
Step 4: Check the order details and place the order
Future Outlook of ZRX Coin
The community ratings of the ZRX token look strong on the parameters of Roadmap, Community and Usefulness. This is because of the focus area of the ZRX token which is to create crypto assets without dependence on intermediaries. As these assets can also be linked to physical assets in some cases, it enables users to trade in the digital representation of these assets.
ZRX coin has given more than 50% gains over the past week. These price changes can be dynamic. Hence investors must check all factors and seek advice before they consider buying or selling.
Challenges Facing ZRX Coin
Like any crypto token, ZRX also has its set of challenges. Some of these challenges apply to other cryptos as well.
Adoption of 0x protocol: This has a direct impact on the price of ZRX tokens. Increased adoption will increase the buy-side pressure on the token thereby creating a positive price movement. The converse is also true where if there is not much demand, the price of the coin can be bearish.
Regulatory Challenges: Regulatory changes have a considerable impact on the prices of crypto tokens. This is true not just for ZRX but for other tokens as well. Having said that, crypto tokens with a large market cap and robust community can stay strong during regulatory pressure. While coins with smaller market capitalisation call fall harder.
While these are few, there are other challenges such as liquidity risks and security risks which are common to all decentralised platforms. While these challenges exist, the crypto community actively works to safeguard asset security and investor sentiment.
Read more: Guide To Evaluate Crypto Projects
0x protocol and ZRX coin present a unique proposition to create new assets and trade ERC-20 tokens. It improves a user’s ability to interact with the Ethereum network and can be a thriving playground for enthusiasts looking to experiment with economics and fungible tokens. Having said that, it is important to note that one should thoroughly consider all pros and cons before deciding to invest.
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